(1) Reasons for Proposal

This amendment aims to impose the obligation to submit the data necessary for the defect investigation on the motor vehicle manufacturer if the requirements prescribed by Presidential Decree, such as repeated car fires, are met, and assume the defect if it is not submitted; and to prescribe matters mandated by the Act and matters necessary for the enforcement thereof, such as adding a requirement for the assumption of defects as the Motor Vehicle Management Act has been revised (Act No. 16950, promulgated on February 4, 2020; to be enforced on February 5, 2021) to strengthen sanctions on motor vehicle manufacturers who concealed or failed to submit data on such defects.

(2) Major Provisions

A. Requirements for the assumption of defects (Article 8-3 newly inserted) 

Stipulate the case where repeated fires occur in the same structure and device of the same type of motor vehicle or where it is suspected that human injury accidents occur repeatedly due to the same structure and device as requirements for the assumption of defects.

B. Data that may be requested from relevant agencies for motor vehicle accident investigation, etc. (Article 8-4 newly inserted) 

Stipulate that data such as CCTV footage from local governments, traffic accident investigation reports from the National Police Agency, fire investigation reports from the National Fire Agency, and insurance companies' self-accident investigation and insurance processing history may be requested.

C. Construction, operation, and work of the vehicle defect information system (Article 8-5 newly inserted) 

Construct a computerized system to report, collect, store, analyze, manage, and provide defect information, and perform duties such as improving security and maintenance.

D. Non-public information of the Committee for Deliberation on Safety and Defects of Motor Vehicles (Article 9-9 newly inserted) 

Stipulate personal information and matters related to the trade secrets of motor vehicle manufacturers as well as other matters or information determined to be private by the Committee as non-public objects.

E. Re-deliberation procedure of the Committee for Deliberation on Safety and Defects of Motor Vehicles (Article 9-10 newly inserted) 

Stipulate that requests for re-deliberation shall be submitted to the committee within 15 days from the date of notification of the results of the committee's deliberation and that the person who requests the re-deliberation shall be notified in writing of the result of such re-deliberation within 10 days after the deliberation.

F. Add office work, which is subject to personally identifiable information processing (Article 14-7) 

Add office work concerning the exchange and refund arbitration of the Committee for Deliberation on Safety and Defects of Motor Vehicles, of which personally identifiable information processing is inevitable, to the office work that may process personally identifiable information.

G. Entrustment of the establishment and operation of the vehicle defect information system (Article 19 (11)) 

Entrust the work related to the construction and operation of the vehicle defect information system to a person designated as a performance test agent (the Korea Automobile Testing & Research Institute of the Korea Transportation Safety Authority) pursuant to Article 32 (3) of the Act.

H. Increase the calculation factor of the penalty surcharge and provide provisions for the rational reduction of the penalty (attached Tables 1-2, 1-3, and 1-4) 

Increase the calculation factor of the penalty surcharge as the Act has increased the penalty (1/100 of sales → 3/100) for concealing, reducing, or failure to correct defects.

Stipulate the reduction of the penalty surcharge (not exceeding 50%) and the upper limit for voluntarily taking corrective action by motor vehicle manufacturers, etc., before the performance test agent confirms that the safety standards are not met in order to induce and activate voluntary recall.

I. Improve the standards for imposing administrative fine (attached Table 2) 

Improve the standards for imposing the administrative fine as the Act has increased the penalty (10 million won → 20 million won) for the case, etc., where a corrective action plan is not reported.